Chrysler Woos Volkswagen Owners with Cash-Back Offer

By Christina Rogers

Chrysler Group is trying to attract people who drive Volkswagens, including the new Beetle.

Chrysler Group LLC, a company known for marketing big pickups and Hemi engines, is making play for a new type of customer – those happy to drive around with a flower holder affixed to their dash.

Starting this month, Chrysler is offering $1,000 cash back to customers who have a vehicle made by Volkswagen AG.

VW, of course, is the European at-times bitter rival of Chrysler’s majority owner, Fiat SpA. The German auto maker also produces a dramatically different fleet of vehicles than Chrysler – sporty, German-engineered cars, diesels, and the Beetle, which until recently came with a flower holder on the dash.

Chrysler’s offer, which was first reported by Automotive News, is unusual among auto incentive programs. To be eligible for the discount, customers don’t even have to trade in or give up their VW vehicles, merely prove that they’ve owned or leased one in at least 30 days before getting the new Chrysler.

The one exception: VW’s Routan minivan, which is built in same plant as the Chrysler Town & Country and Dodge Grand Caravan.

The program started this week at dealerships nationwide and runs through Jan. 2. It’s good on a lengthy list of Chrysler models, including Ram pickups and versions of the new 2013 Dodge Dart. Not surprisingly, the SRT Viper supercar isn’t on that list.

A Chrysler spokesman said the company periodically does promotions that target a specific manufacturing, including one recently on Toyota Motor Corp. pickups and sport-utility vehicles.

The company also introduced the new 2013 Dodge Dart compact this summer, the spokesman said. “We feel it will appeal to VW owners,” he said.

Still, some dealers say they’re baffled by the move, mostly because they don’t see a lot of cross shopping between the two car makers. In 2012, 1.9 percent of all Chrysler buyers traded-in a VW, according to TrueCar.com.“If we trade in about one VW a month, that’s a lot,” said John Morrill, a Chrysler dealer in Franklin, Mass.

His dealership, however, plans to take advantage of the $1,000 offer. In its next round of direct mailings sent to customers, it plans to expand its list to include VW owners specifically, Mr. Morrill said.

Chrysler has made an impressive comeback since 2009, ranking among the industry’s fastest-growing auto makers in 2011. This year, its sales have climbed 21.8% to 1.5 million vehicles at the end of November.

But Volkswagen, too, has also reported some big gains. Through November, its sales were up 35% to 394,129 vehicles, thanks in part to the success of its redesigned Passat sedan.

“We are glad to see we are on our competitor’s radar,” a VW spokesman said, when asked about Chrysler’s new offer.

And yet, the rivalry between VW and Chrysler’s parent Fiat is nothing new in Europe, where the two car makers are both dominant players in the market. This summer, for instance, Fiat-Chrysler Chief Executive Sergio Marchionne accused VW of stoking a price war in Europe that’s contributed to steep industry losses there.

VW quickly fired back, asking Mr. Marchionne’s to resign as head of the European Automobile Manufacturers’ Association, the industry’s top lobbying group on the continent.

“I really don’t think there’s a connection,” Mr. Vazin said, adding that in the U.S., VW is still a relatively small brand aspiring to grow bigger. In Europe, it’s the no. 1 auto maker.

A Chrysler spokesman declined comment on a possible link, adding that it’s only speculation.

Comments (5 of 12)

arcee? guess you've never seen a VW Passat, made in TN... last I checked that was part of the USA...

2:35 pm December 11, 2012

Philbert the MOPAR Hater wrote :

Why would any VW owner ever consider trading their vehicle for MOPAR junk?

8:10 am December 11, 2012

John Q wrote :

Whether or not it's justified to think so, most VW owners would consider a trade to a Chrysler to be a step down.

4:38 pm December 10, 2012

arcee wrote :

Your FIAT 500 Abarth was made in Mexico...not really saving any American jobs. Maybe if it was actually assembled in the USA you could make the argument that jobs were saved/created to assemble the FIAT in the USA, but since it is made in Mexico by an Italian car company that is kind of a stretch.

4:01 pm December 8, 2012

charles wrote :

I think Chrysler/FIAT is right to go after VW byers.I hate VW products including AUDI.LAMBORGHINI,SEAT.BENTLEY.People in America should support Chrysler/FIAT for saving American jobs. I love my new FIAT ABARTH 500 I hate VW"S